How can you improve your credit score?

It's virtually impossible to change your score in the time between when most people decide to buy a home or refinance their mortgage and when they apply. So the short answer is, you really can't "on the spot." But there are strategies you can live with to make sure when you apply for a loan your score is as high as possible. If you do have mistakes on your credit then can be corrected rather quickly but it does get expensive so the key is know your credit as soon as possible. Removing mistakes off your credit can cost about $75 per item per borrower so cost can add up quickly but its still cheaper then getting a subprime loan.

Make sure that the information each of the three credit reporting bureaus has on you is consistent and up to date. Order a copy of your credit report about once a year, and dispute any inaccuracies.

Note: Theoretically, if a series of credit reports is requested on your behalf during a limited amount of time, your score goes down until time passes without any inquiries. Changes in the law though have made "consumer-originating" credit report requests not count so much. Also, a series of requests in relation to getting a mortgage or car loan is not treated the same as a number of credit card requests in a limited time. This is because the credit bureaus, and lenders, realize that people request their own credit reports to keep up with what's on them, and smart consumers shop around for the best mortgage and car loans.

Unsolicited credit card solicitations in the mail don't count against your credit report, so don't worry.

The two main components of your credit score are your payment history and the amounts you owe. Bankruptcy filings and foreclosures, which can stay on your credit report for as many as 10 years, can significantly lower your score. It's never a good idea to take on more credit than you can handle.

Late payments work against you. It's extremely important to pay bills on time, even if it's only the monthly payment and a small one.

Don't "max out" your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better. you want to keep your balance below 15% of the limit amount for each credit card any more and you will start loosing points. It's said that by carefully managing your credit, it's possible to add as much as 50 points per year to your score.

Over the past year lenders have raised the credit score requirements to get a home loan. To help our clients improve thier scores we have a program that will coach you on how to improve  your score over time. I have included a video that explains the process.

how we can help you improve your credit score

If you have a collection on your credit report DO NOT I repeat DO NOT CONTACT THE COLLECTION AGENCY.  While you think that by paying a collection would be considered a good thing it is not.  Any recent activity in regard to a collection will negatively impact your credit, even paying the collection.  By paying the collection you will trigger a recent collection activity and your score will take a hit for it. You want to pay the collection through escrow so that your score will not go down until after your loan has closed.